INDUSTRY PROFILE

The construction industry is the second largest industry in India after agriculture. It accounts for about
11% of India as GDP. It makes significant contribution to the national economy and provides
employment to large number of people.

There are mainly three segments in the construction industry like real estate construction which
includes residential and commercial construction; infrastructure building which includes roads, railways,
power etc; and industrial construction that consists of oil and gas refineries, pipelines, textiles etc.

According to a study by ASSOCHAM, the burgeoning Indian construction industry, currently worth $70
billion, will rise to US$120 billion by 2010.

Construction is an essential part of any country’s infrastructure and industrial development.

Construction industry, with its backward and forward linkages with various other industries
like cement, steel bricks etc. catalyses employment generation in the country. Construction is the
second largest economic activity next to agriculture. Broadly construction can be classified into 3
segments – Infrastructure, Industrial and Real Estate.

Infrastructure segments involve construction projects in different sectors like roads, railways, ports,
irrigation, power etc. Industrial construction is contributed by expansion projects from various
manufacturing sectors. Real estate construction can be sub-divided into residential, commercial,
malls/multiplexes etc.

The construction activity involved in different segments differs from segment to segment. Construction
of houses and roads involves about 75% and 60% of civil construction respectively. Building
of airports and ports has construction activity in the range of 40-50%. For industrial projects,
construction component ranges between 15-20%. Within a particular sector also construction
component varies from project to project.

Construction sector contributed about 11.5% to the country’s GDP in FY 08. Over past few years,
growth of the construction has followed the trend of economic growth rate of the country. The
multiplier factor between growth rates of construction and GDP has been about 1.5X-1.6X. Over past 3
years, construction as a percentage of GDP has increased from 8.0% in FY 06 to 8.5% in FY 08.
Construction activity being labour intensive has generated employment for about 33 million people in
the country.

The construction industry in India is highly fragmented. There are number of unorganised players in the
industry which work on the subcontracting basis. To execute more critical projects, nowadays bids are
increasing placed in consortium. But the profitability of the construction projects varies across different
segments. Complex technology savvy projects can fetch higher profit margins for construction
companies as compared to low technology projects like road construction. Various projects in
Construction industry are working capital intensive. Working capital requirement for any company
depends on the order mix of the companies.

The construction industry operates on the basis of contractual agreements. Over the years different
types of contracts have been developed. It mainly depends on the magnitude and nature of work,
special design needs, annual requirements of funds and complexities of job. Construction projects can
be materialised through number of smaller contracts which mainly depends upon size of the project and
diversified nature of activities to be carried out in the project. As a result, Subcontracting is a common
phenomenon in the construction industry

ABSTRACT OF MARKET RESEARCH

Marketing Research provides information that assists and organization to define opportunities for
product development and market strategy. It works by assessing whether marketing strategies are
accurately targeted, and by identifying market opportunities or changes that are required by customers.
Market research tends to confirm issues that are well-known in a market initially, but if planned well and
effectively it will also identify new opportunities, market niches, or ways by which to improve sales,
marketing and communications activities.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a
science of studying now research is done systematically. In that various steps, those are generally
adopted by a researcher in studying his problem along with the logic behind them. It is important for
research to know not only the research method but also know methodology. ”The procedures by which
researcher go about their work of describing, explaining and predicting phenomenon are called
methodology.” Methods comprise the procedures used for generating, collecting and evaluating data.
All this means that it is necessary for the researcher to design his methodology for his problem as the
same may differ from problem to problem. Data collection is important step in any project and success
of any project will be largely depend upon now much accurate you will be able to collect and how much
time, money and effort will be required to collect that necessary data, this is also important step. Data
collection plays an important role in research work. Without proper data available for analysis you
cannot do the research work accurately